Housing starts increased 1.4% in December to a seasonally adjusted annual rate of 1.70 million, the U.S Census Bureau reported.
The rate is 2.5% above December 2020 housing starts. Single family starts fell 2.3% during the month, while multifamily starts increased 10.6%.
Regionally, housing starts increased 20.2% in the Northeast and 36.5% in the Midwest month-over-month. In the South and West, housing starts declined 1.6% and 13.8%, respectively.
Building permits increased 9.1% in December and 6.5% year-over-year. An estimated 1.72 million housing units were authorized by building permits in 2021, a 17.2% increase compared with 2020.
The National Association of Home Builders anticipates affordability headwinds ahead due to rising mortgage rates and construction costs.
“NAHB's outlook for 2022 calls for relatively flat conditions for single-family construction, with additional gains for multifamily and remodeling,” stated Robert Dietz, NAHB chief economist.
Housing completions declined 8.7% in December and 6.6% year-over-year.
The full report can be found here.